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Conclusion
This paper has examined the determinants of working capital for shariah-compliant firms listed under
the consumer products sector. The result suggests that the average collection period, current ratio, and
quick ratio were found to have a statistically significant relationship with the level of working capital.
Although this paper has provided us with empirical evidence, several areas need to be improved with
future empirical research. First, this paper did not provide any sectoral analysis on the level of
working capital. Future research should explore whether industry classification would have any effect
on the level of working capital and its relationship with the selected determinants. Second, this paper
utilizes Stata command vselect in determining the optimal model. A future researcher might want to
explore other techniques in determining the optimal model.

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